Kentucky Gov. Andy Beshear (D) held a press briefing on Thursday on the state's medical cannabis program.
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NewsTranscript
00:00:00 Good afternoon, everyone. I'm Andy and welcome to this week's team Kentucky
00:00:05 update. We have some important projects to highlight today that shows our
00:00:09 incredible economic momentum and that it has no signs of slowing. Since I
00:00:14 became governor, we've now announced over 1000 new location and or expansion
00:00:20 projects, breaking all types of records. $30.5 billion of private sector
00:00:26 investment in us in Kentucky and creating over 52,500 new jobs. It is
00:00:32 the biggest, best economic development win streak in our history. And today
00:00:37 we're going to talk about some some statistics and some projects showing
00:00:41 how it continues. Just today, the March 2024 unemployment report was released
00:00:47 for Kentucky and the state set a new total for how many jobs have ever been
00:00:53 filled in the Commonwealth. Jobs grew by 9400 in March for a new record high
00:01:00 of 2,036,900 jobs. With all the announcements we've made over the past
00:01:07 four years, we're also reaching a really exciting point where we're going
00:01:11 from the announcement and the groundbreaking to the reality. You
00:01:15 know, announcements are the hope. Groundbreaking are the progress, but the
00:01:19 ribbon cuttings are when the jobs are there when the products are being
00:01:23 produced, when the new opportunities are there being filled and families
00:01:27 are able to create that better life. So last Friday I was in E town to get a
00:01:33 first hand looked at a great new project that is in full operation. Kruger
00:01:38 Packaging's new $113 million state of the art manufacturing operation. The
00:01:45 project was announced back in 2021 and now it is up and fully running. It was
00:01:50 great to check out the operation in person, which is in a 400,000 square
00:01:56 foot facility in the T. J. Patterson Industrial Park. This is one of the
00:02:00 most technologically advanced plants of its kind in the entire world. The best
00:02:07 part is Kruger's investment is creating nearly 150 really good jobs and it was
00:02:12 fun. This was their spirit day. So we had three guys dressed up in Tennessee
00:02:17 volunteer and thankfully we had a lot more and Kentucky Wildcat or others.
00:02:22 But but a great culture, great leadership and and everybody I talked
00:02:26 to was so excited about this new employer in these new jobs. So I want
00:02:31 to thank Kruger Packaging's leaders as well as partners at L. G. And E. And K.
00:02:35 U. Which is making sure the facility has all the power that it needs. I also
00:02:40 want to take a minute to talk about an incredible project in Shelby County
00:02:43 that we're working on that I'm gonna highlight tomorrow. I'm gonna travel to
00:02:47 Shelbyville tomorrow afternoon where I'll be joined by David Turk, who is
00:02:51 the deputy secretary of the United States Department of Energy and
00:02:54 executives from Veland, which is a major metal fabricator. Veland is
00:02:59 already a great team Kentucky partner and has made huge investments in early
00:03:04 2021. Veland announced they were going to locate their north american
00:03:08 headquarters in Louisville. That was an $8.8 million investment that created
00:03:13 75 full time jobs. Just four months later, feeling announced plans to
00:03:17 invest $100 million and create 75 quality jobs building a copper and
00:03:23 copper alloy recycling center in Shelby County. So tomorrow we'll be at that
00:03:29 new plant. But talking about the potential advanced copper recycling
00:03:33 facility project, that would be a nearly $875 million project by Veland in
00:03:41 Kentucky with the Department of Energy providing up to $270 million in grants.
00:03:46 This is an incredibly important project that has multiple goals. It's state of
00:03:51 the art processing would turn a mix of copper scrap and other metals into the
00:03:56 high purity copper required for semiconductors for E. V. Applications
00:04:00 and more. It will also dramatically reduce the carbon footprint for this
00:04:04 kind of metal manufacturing and it will secure America's national security
00:04:08 interests by ensuring a stable and abundant supply of high grade copper.
00:04:13 And of course, my favorite part is the jobs. We get this done. Veland expects
00:04:19 to create another 200 permanent full time jobs through several phases of the
00:04:24 project. They're also prioritizing hiring not just from Shelby County,
00:04:28 which they are, but they'll have internship programs with Kentucky State
00:04:32 University, Simmons College and other institutions interested in creating
00:04:37 pathways to jobs in advanced manufacturing. I want to thank Veland,
00:04:41 the Department of Energy and all the state and local leaders who are working
00:04:45 to make this project possible.
00:04:47 All right. This month is also a special month where we're observing national
00:04:53 second chance month. This is a time for folks to come together and support
00:04:58 Kentucky ins who are returning to their communities after paying their debt to
00:05:02 society or overcoming addiction. Helping people get back on their feet
00:05:07 is a win win. It helps our families, it helps our communities and it helps fill
00:05:12 open jobs in our workforce. A second chance can rebuild a life and it
00:05:17 reduces the chances of someone returning to prison for me. So much of
00:05:21 this work originates from my faith, which teaches us second chances aren't
00:05:25 just the right thing to do there. What we are called to do that we are our
00:05:29 brother and sister's keeper and that none of us are our worst moments that
00:05:34 there is always an opportunity for a better life ahead.
00:05:38 Scripture tells us so continue encouraging each other and building
00:05:42 each other up just like you are doing already. Today we have a new way that
00:05:48 we're going to help Kentucky ins and businesses with second chances. But
00:05:52 before we get to today's news, I want to talk about what we've been doing as an
00:05:55 administration and as a commonwealth up to this point because I'm proud of so
00:06:00 many different groups coming together to do such good work on my third day in
00:06:05 office. I restored voting rights to Kentucky and who completed their
00:06:08 sentences for non violent, non sexual offenses. Now we have restored 192,698
00:06:15 Kentucky ins right to participate in our great democracy. In september we
00:06:20 launched the jobs on day one initiative which helps former inmates become
00:06:24 strong candidates for Kentucky's fast paced labor market. In june we
00:06:28 announced that Simmons College of Kentucky, a private historically black
00:06:32 college in Louisville is offering courses at three state prisons,
00:06:35 Kentucky Correctional Institution for Women, North Point Training Center and
00:06:40 Luther Luckett Correctional Complex. I should point out they're doing this
00:06:43 through Pell grants and this is a program they brought to us which is a
00:06:47 pretty special service that Simmons originated and is now working with us
00:06:52 on. We launched a statewide project that provides transportation at no cost to
00:06:58 former inmates so that they can get to addiction treatment, job interviews,
00:07:01 education and employment. 95% of our state inmate population will be
00:07:07 released from incarceration at some point. So we have to remove barriers to
00:07:12 re entry to society and we've done that by asking our Department of Corrections
00:07:16 to issue certifications of employability to those who successfully
00:07:20 complete a number of programs. This administration efforts continue to
00:07:24 expand and it's paying off since becoming governor in 2019. I'm proud to
00:07:29 say the state has recorded the three lowest annual recidivism rates in over
00:07:34 a decade. That means that we are safer. That means that people are getting
00:07:38 their lives back together together, getting back with their families. That
00:07:42 is success both on a societal level and on a deeply personal level for those
00:07:47 that are securing these jobs and moving forward together. We're connecting
00:07:52 inmates with employers who are looking for candidates and we're matching them
00:07:56 with industries where they have prior experience. We have our re entry
00:08:00 division director and assistant director from the Department of
00:08:03 Corrections with us today, Kristen Porter and Christie Sorrell. Thank you
00:08:08 for the work you all do day in and day out. Assign legislation to help
00:08:12 businesses access treatment for employees or the incarcerated
00:08:15 population with addiction. We also offer the pudding Kentucky and first
00:08:20 program. This program helps those transitioning out of incarceration or
00:08:25 addiction treatment and recovery get into the workforce to support public
00:08:30 safety. Teen Kentucky offers second chances to those who have committed low
00:08:34 level drug offenses for the first time. We have programs like the rocket
00:08:37 docket to get people through the justice system and into the treatment
00:08:41 they need as quickly as possible, making it possible for lower level
00:08:45 offenses to be dismissed when people get through and complete that treatment.
00:08:49 We've also provided funding through the Office of Drug Control Policy to the
00:08:53 Kentucky Chamber Fair Chance Academy to help businesses hire and retain second
00:08:58 chance talent. To date, the chamber and these foundation members, I think we've
00:09:02 got a couple of them here today have helped identify 730 fair chance
00:09:07 employers in our state, and that number is growing. We want to thank everyone
00:09:11 who's taken part in this effort. We also have 10 counties certified as
00:09:15 recovery ready communities. That means they have established addiction
00:09:19 treatment programs and offer transportation to and from employment
00:09:23 services and job interviews. We've also focused on offering educational
00:09:28 opportunities. This has always been an education first administration. It means
00:09:32 that everybody ought to have access to educational opportunities through the
00:09:37 education and labor cabinet. We offer registered apprenticeship programs like
00:09:42 building trades where folks can potentially earn a nationally
00:09:45 recognized credential. And I want to thank our unions and our trades for
00:09:49 agreeing to become directly involved, especially at some of our correctional
00:09:54 institutions, truly getting that hands on training and then providing support
00:09:59 to individuals as they transition out a group around that can provide that
00:10:05 support and those skills that are so highly sought after right now. And we
00:10:09 offer free educational training and career resources in every Kentucky
00:10:13 County. That includes G. E. D. Preparation classes and testing family
00:10:17 literacy programs, job related skill certifications and college preparation.
00:10:21 Thanks to our free G. E. D. Initiative, nearly 10,170 Kentucky and have earned
00:10:27 their G. E. D. Diploma since January of 2020. And when you put all this
00:10:33 together, you see good things happening even in areas that some may have lost
00:10:38 hope. That's not just low recidivism rates. It's the fact that the last year
00:10:42 they measured 2022 we were one of only eight states that saw significant
00:10:46 decrease in overdose deaths. That's everybody working hard. That's the
00:10:50 stability of a good job after re entry or after treatment. And it means that
00:10:55 more of our brothers and sisters across Kentucky are succeeding. And just
00:11:00 think about that number for a minute. I mean, the fentanyl that's out there is
00:11:03 getting more and more dangerous, meaning an overdose is is easier or
00:11:08 more possible every day. Yet we have fewer people that are dying from it, at
00:11:13 least in the last couple of years. That's a lot of hard work. That's a lot
00:11:17 of changes that have been made in everyone who's had any part of that
00:11:20 from pure support specialists to everybody else. Thank you for so much
00:11:25 work. And there's a family out there that still has a loved one because of
00:11:29 your work. That's also Narcan being everywhere we can put it, and we ought
00:11:32 to continue to support that because the answer to how many times should you
00:11:36 resuscitate someone who's overdosing? It's every single time that somebody's
00:11:40 child, somebody's friend. That is a life child of God. It's our
00:11:45 responsibility to make sure we bring them back every single time and try to
00:11:50 help. And the future is bright. I mean, I just read off some of our economic
00:11:54 development statistics right now. We've got good jobs. The last two years we
00:11:58 averaged $26 an hour as our average incentivized wage. First time ever.
00:12:03 It's been that high two consecutive years. And so we think about a lot of
00:12:08 these services in times of great difficulty on times of prosperity, our
00:12:12 opportunity to get someone stability and to make major change. And that
00:12:17 change doesn't just impact them. It impacts their kids and their kids. Kids.
00:12:19 It is intra generational change. The example that somebody has gotten their
00:12:24 life back on track sets for the rest of their family and those around them is
00:12:28 something special and important. And today we're gonna celebrate it here in
00:12:32 a minute. So with the historic progress we're seeing, we have a responsibility
00:12:35 to make sure prosperity reaches everyone. So today we're launching a
00:12:40 new website, a one stop shop of resources available for Kentucky ins
00:12:46 who need a second chance and for businesses who want to join us in
00:12:49 creating a better Kentucky. It's called second chance dot k y dot gov. This is
00:12:55 an attempt to bring all of those things in one place for folks who are looking
00:13:00 to rebuild their lives and don't know what all the possibilities are out
00:13:04 there and how they can all work together. It's an attempt to take any
00:13:08 bureaucracy from government or our partners and remove it to make it as
00:13:13 easy as possible for people to see that there is help and that we want to get
00:13:17 you on the right track from employment opportunities, addiction treatment to
00:13:22 education. You can find it all here and and the resources that we offer to
00:13:27 businesses uh to all those that want to step up and do what's right and be a
00:13:32 part of this important movement. So this is a really exciting step towards
00:13:36 helping even more Kentucky ins and making a real difference for our
00:13:40 families. So today we have Kentucky Dam Village Park manager scott razzle left
00:13:45 with us. Scott is a part of the effort we have at our state parks and second
00:13:49 chances as state government is team Kentucky. We want to walk the walk and
00:13:54 not just talk the talk and we have Sarah Young, an employee who works as a
00:13:58 cook at the state park with us today who has benefited from these this
00:14:02 program, which all join us and say a few words.
00:14:04 Welcome.
00:14:11 Hello. Yes, my name is scott razzle Park manager Kentucky Dam Village. I'm
00:14:17 thrilled to tell you about the second chance employment initiative we've
00:14:20 started at the park in the park system. As you know, our state parks have been
00:14:25 short staffed with positions staying vacant for far too long. But today we
00:14:30 have a solution that addresses the shortage and makes a real difference in
00:14:35 what we can provide for our guests. We carefully select individuals who have
00:14:40 served their time and are ready to rejoin the works force and contribute
00:14:44 to our community by offering them jobs in our beautiful state parks. We're
00:14:49 giving them a chance to learn new skills and find purpose while making
00:14:54 the parks a better place. But let me be clear,
00:14:57 yes, safety is still important to us. We're choosing candidates who share the
00:15:03 commitment to ensure visitors have a secure and wonderful environment when
00:15:07 they come to visit by supporting this initiative during tough times. We're
00:15:12 showing that we believe in the second chance, reducing the likelihood of
00:15:17 reoffending and creating more understanding community with a
00:15:22 dedicated, carefully selected staff. We can provide the top notch service to
00:15:28 our guests, which our guests deserve.
00:15:30 That's what it's all about. Isn't it giving people a second chance, improving
00:15:36 our parks and strengthening our community? We're proud to lead the way
00:15:41 in this possible adventure.
00:15:42 Thank you.
00:15:47 I'd like to start by thanking everybody that makes the reentry program possible.
00:15:52 You all give us a second chance to live to obtain a life that we may not have
00:15:57 thought was attainable. I know I never imagined I'd become a full time state
00:16:01 employee and however, because I followed my passion for cooking and showed how
00:16:05 hard I'm willing to work to prove that I'm no longer what my criminal record
00:16:08 says. Scott Ratz left in the Kentucky Dam Village saw my potential. The park
00:16:13 began working with the reentry program to give those of us with the dark past a
00:16:17 much brighter future. This is truly a blessing and I'm beyond grateful and
00:16:21 proud to say that I'm the first person at our park to have this opportunity.
00:16:25 Now, instead of wondering which restaurant might hire me, my future is
00:16:29 secured and I owe it all to this program. So instead of cooking for you,
00:16:33 Governor Bashir, I'm going to thank you.
00:16:34 I'm gonna come by and we cook sometime. I'll show you.
00:16:40 Thank you, Scott. And thank you, Sarah. That can't be easy. But but but you set
00:16:48 an example and you create hope for so many other people. So thanks for being
00:16:52 a part of team Kentucky and you're an important part of team Kentucky.
00:17:00 Now, when it comes to job growth, this is a team sport. Our private sector
00:17:05 partners right now are creating a better commonwealth and providing real
00:17:10 opportunities. Today, I'm excited for you to hear from one of our great
00:17:14 teammates, Barbara Acre, with more than a bakery in Versailles. She serves as
00:17:19 the company's family pride director. More than a bakery was a graduate from
00:17:23 the first class of the Fair Chance Academy. Barbara, would you join us?
00:17:26 Tell us a little more about the program.
00:17:28 Yeah,
00:17:28 your facility is also about a half a mile from my uncle's house. We drive
00:17:34 by it all the time.
00:17:35 Hi, everyone. Um, I'm Barbara Acre. I'm the family pride director at more than
00:17:42 a bakery in Versailles. I'm happy to be a part of today's recognition of
00:17:46 second chance month. I hope we can encourage more employers to consider
00:17:50 second chance hiring to help ourselves and help Kentucky. Second chances are
00:17:55 important to me on a personal level. My nephew struggled for over a decade
00:17:59 with addiction and got tangled up in the justice system. Unfortunately, he
00:18:04 lost his battle with addiction in 2019. The loss was devastating for my family
00:18:09 and watching my brother and his wife grieve over the loss of their first
00:18:12 born child was unbearable. I prayed for months for guidance on how I could make
00:18:16 a difference and hopefully prevent more tragedies like this one. In 2022, the
00:18:22 Kentucky Chamber announced its first Fair Chance Academy, and I got the email
00:18:26 and I, like, jumped out of my chair, ran straight to our president Bill Quig,
00:18:31 and I explained why I felt so passionate about this. Um, he's like,
00:18:35 let's do it. Um, so I wanted to be a catalyst for change and hopefully give
00:18:40 someone like my nephew a chance a chance to succeed. Um, since my
00:18:44 graduation from the Fair Chance Academy, our bakery has instituted fair chance
00:18:49 hiring. We take an individualized approach, much like you guys. Um, so we
00:18:54 can ensure we're making a candidate or choosing a candidate. It's gonna be a
00:18:58 good culture fit and also a productive family member. Our success rate with
00:19:03 those coming out of the justice system has been high in the areas of retention,
00:19:06 job promotion and overall culture fit for us. Um, more than 80 million
00:19:12 Americans, which is roughly a quarter of the U. S. Population have a criminal
00:19:17 record. As an employer, if we open ourself up to this talent pool, not
00:19:22 only are we helping ourselves and those who need a hand to be successful, we
00:19:25 are helping our communities. Thank you. Thank you.
00:19:28 Thank you to Barbara and everyone at more than a bakery. And thank you for
00:19:36 all of our second chance employers that are out there. And remember, online we
00:19:41 can connect you to the academy to other resources if you want to consider being
00:19:45 a second chance employer. It will help you with your workforce needs, and it's
00:19:49 the right thing to do. They're not mutually exclusive. You can help the
00:19:53 world. You can help a single individual, and you can fulfill your business
00:19:57 needs all at the same time.
00:19:59 Finally, we're gonna hear from Dr John Gregory, who oversees our Office of
00:20:04 Adult Education. Got John is going to share more about the resources we have
00:20:08 to support education and job growth. Dr Gregory.
00:20:11 Yeah.
00:20:12 Thank you so much, sir. My name is J. C. Gregory. I am the executive director of
00:20:22 the Office of Adult Education in the education and labor capital. So what
00:20:27 this is really all about is we want to keep the main thing the main thing. And
00:20:33 Sarah has just demonstrated that the main thing are people like her who have
00:20:38 had the opportunity to reinvent themselves through a second chance. So
00:20:43 thank you so very much. So when we talk about this, let's look through the lens
00:20:48 of beginning with the end in mind, and we're speaking in terms of workforce
00:20:54 development. So what does that look like? That looks like an individualized plan
00:21:01 for those individuals that have the passion to learn. And we're going to
00:21:07 take those God given gifts and turn them into skills.
00:21:12 So let's break that down. So we're talking about those individuals across
00:21:18 the Commonwealth that maybe have not had the opportunity to complete the high
00:21:23 school process. We will take them hand in hand through the G. E. D. And they
00:21:28 will complete that process. We're talking about folks that have a desire
00:21:33 to go to college and whatever shape, form or fashion. We once again will
00:21:39 take their hand and walk them through that process. We're talking about folks
00:21:44 that want to get into the skill trades and all different types of things of
00:21:49 that nature. Once again, we relish in the opportunity to be just a small
00:21:55 component of that success story.
00:21:59 So again, this is a systems process. This is the education,
00:22:06 training, upskilling that leads to employment and not just employment.
00:22:15 We're talking about the transformation of gifts and talents into skills that
00:22:21 will number one benefit the individual who is transitioning and their families,
00:22:28 but also significantly the Commonwealth of Kentucky. So let me just say one
00:22:34 more time, the education and labor
00:22:37 a cabinet under the leadership of Team Kentucky. Give us an opportunity
00:22:44 to walk this journey and experience your success. Thank you and God bless.
00:22:56 All right, next we have some great news about funding that's gonna help
00:23:00 shelter some of our most vulnerable Kentucky ins. I'm proud to announce an
00:23:04 award of $23 million that's going to the Kentucky Housing Corporation. This
00:23:09 money is a reallocation of emergency rental assistance funds awarded
00:23:13 through the federal American Rescue Plan. The Kentucky Housing Corporation
00:23:18 or K. H. C. Will use the funding on housing development projects for
00:23:22 homeless, low income and elderly Kentucky ins. This is pretty timely
00:23:26 with some legislation that we've seen. $16 million will fund three affordable
00:23:32 housing projects. The first is Town View Apartments. That is a 24 unit
00:23:37 development in Hyden Leslie County, 17 duplexes compromising 34 units in
00:23:44 Owsley County and in Lexington Wellington Park Apartments, 45 co
00:23:50 housing units for elderly folks living in Fayette County and $6.5 million
00:23:56 will go to 10 homeless service providers covering several of our area
00:24:01 development districts. This funding helps pay for hotel and motel stays,
00:24:05 short term rental assistance, utility deposits and assistance and other
00:24:09 services. The awardees include the Clark County Community Services and
00:24:13 Clark County Homeless Coalition, Gateway Homeless Coalition, Homeless
00:24:18 and Housing Coalition of Kentucky K. C. E. O. C. Community Action in the
00:24:24 Cumberland Add Kentucky River Community Care Life Skills Mountain
00:24:28 Comprehensive Care Salvation Army Hopkinsville Volunteers of America Mid
00:24:33 States and Welcome House with three separate awards in the Buffalo Trace
00:24:37 Lake Cumberland and Northern Kentucky ads. We're looking forward to the
00:24:41 positive impact that these funds can can provide. I continue to believe
00:24:47 that that we're ultimately judged by our creator on how we treat the lost,
00:24:51 the lonely and the left behind and secure housing and and aid for the
00:24:56 homelessness for the homeless certainly falls into how we treat the loss, the
00:25:02 lonely and the left behind.
00:25:04 All right, next we have a pretty exciting announcement for Elliott
00:25:10 County. So for some time, Team Kentucky has been putting abandoned my land
00:25:14 economic revitalization grants to work to repurpose the coal fields of
00:25:19 Eastern Kentucky and to grow new jobs. In October of 2022, I announced a $4.6
00:25:24 million grant to Elliott County to build a center that would bring
00:25:27 together 911 calls the fire department and all emergency operations. After
00:25:32 everything we've been through from tornadoes to floods and more tornadoes,
00:25:36 um, we know how critically important emergency services are. This is needed
00:25:42 because the original 911 center was destroyed in a fire, and the current
00:25:46 fire department structure is aging in a need of costly repairs. I'm happy to
00:25:50 say that a memorandum of agreement has been signed and work will soon begin on
00:25:54 a building that will also serve as a classroom for first responders,
00:25:58 continuing education and in times of need, a warming center and a shelter
00:26:02 for residents of Elliott County. Think about the ice storms that we've had and
00:26:08 other challenges. Those warming centers are so important. This facility means
00:26:12 that families in Elliott County will know that whatever emergency hits, they
00:26:16 will get the quick, coordinated response and have updates on two other Elliott
00:26:21 County projects. A $1.13 million project to construct a food pantry for
00:26:27 the Elliott County Christian Community Center, funded by a community
00:26:30 development block grant, is under construction with a concrete floor and
00:26:34 carport loading area. The new food pantry will include storage areas for
00:26:39 dry goods and cold storage. Another project in the county that improves
00:26:43 clean water service to 1,265 households and 85 businesses in the Sandy Hook
00:26:50 Water District is nearing completion, funded with a $1.5 million grant from
00:26:55 the Appalachian Regional Commission Central Appalachian Distressed County
00:27:00 Infrastructure Initiative, $2 million in federal funds and 1.2 in local
00:27:05 funding. This is a massive project for Elliott County, and we're getting close
00:27:09 to its completion.
00:27:11 All right, next up, we have an update on our medical cannabis program with some
00:27:19 some specific updates based on new legislation that's come out with some
00:27:24 fixes that were certainly needed. So since taking office, we've been
00:27:28 committed to providing access to health care and creating safer communities for
00:27:32 all of Kentucky. Just a year ago, I signed Senate Bill 47, which legalizes
00:27:37 medical cannabis beginning in January of 2025. Since that time, we filed 15
00:27:43 regulations to implement this new program. Those rules provide for how
00:27:46 medical cannabis businesses will operate and how Kentucky is with
00:27:50 qualifying conditions can become cardholders. We have worked hard to
00:27:55 create a safe system that that limits or eliminates abuse while still
00:28:01 providing relief to that veteran suffering from PTSD or or individual
00:28:07 suffering from from unbearable epileptic seizure after epileptic seizure. In
00:28:13 order to ensure Kentucky and can access medical cannabis, we now need to begin
00:28:16 licensing cannabis businesses due to federal laws. Unlike other medical
00:28:21 products, all of our medical cannabis must be cultivated, processed and
00:28:25 produced right here in the Commonwealth. That whole system has to
00:28:29 happen within our borders. Under Senate Bill 47, we were gonna have a challenge.
00:28:34 The the ability to purchase medical cannabis was supposed to begin January
00:28:40 1st 2025, and that's the first time we could license a business. So there was
00:28:44 no way everything was going to be up and running because you have to be
00:28:47 licensed to have the product or to grow the product or to process the product.
00:28:53 And we need the time to make sure that we are in every step of the
00:28:57 enforcement in this process to make sure that it is safe. So knowing that
00:29:03 patients needed access to this medication sooner rather than later, we
00:29:07 were we were capable. We informed the General Assembly of the issue, and we
00:29:11 worked on a solution, which is why I'm pleased to announce that yesterday I
00:29:14 signed House Bill 8 29 into law. Among other things, the bill takes the
00:29:19 important step of moving up the timeline for business licensing by six
00:29:23 months. In other words, we can accept the applications. We can get the
00:29:26 licenses out, and there is time for these businesses to do it right and for
00:29:30 us to ensure that they're doing it right. As a result, the program can
00:29:34 begin issuing license, though there can't begin certain. Certainly,
00:29:39 patients can't get it until 2025, but businesses can operate in 2024 the
00:29:45 middle as opposed to 2025. I'm also pleased to report we're taking steps to
00:29:50 meet the quicker timeline by filing licensing and application regulations.
00:29:55 The new regulations establish a licensing structure for cannabis
00:29:58 businesses, an application review process and timeline and application
00:30:03 and licensing fees. Remember, you can always learn more by visiting K Y Med
00:30:07 Can dot K Y dot gov. So under these new regulations, businesses can begin
00:30:13 applying for a cannabis business license beginning July 1st 2024 through
00:30:19 August 31st 2024. Applicants will be required to pay an application fee.
00:30:24 Submit documentation and information. So this is a timeline we're looking at
00:30:30 right now. Documentation, which is the next slide that will be required,
00:30:34 includes a business history, operation plans, ownership, information, business
00:30:40 location and site plans and financial information. Applicants will also have
00:30:45 one opportunity to fix any issue in their application. Following the
00:30:48 initial submission, it's a new process. We want to work with people through it
00:30:52 in crafting these new rules. We've been focused on ensuring our cannabis
00:30:56 business licensing is fair and transparent. We believe that anybody
00:31:00 who is interested in being a part of this exciting new industry should have
00:31:03 the opportunity to do so as long as they can do it safely and meet the
00:31:07 necessary criteria. That's why today I'm excited to announce that we will
00:31:11 be issuing our medical cannabis business license using a lottery
00:31:16 system. To do so, we've partnered with the Kentucky Lottery Corporation. The
00:31:20 license lottery will be held in October of this year. That will be a lottery
00:31:25 that will select a certain number of those that apply for each of the
00:31:29 different levels that are out there. This is what states are moving towards.
00:31:33 It reduces or eliminates litigation on it creates a more fair process, not one
00:31:39 where people bid against each other, and only then the big companies can be a
00:31:43 part of it, but one that provides at least a chance for everyone who can
00:31:48 meet the criteria. So I'm gonna turn it over to Sam Flynn, our program's
00:31:51 executive director, who's gonna tell us more.
00:31:53 Thank you, Governor. I want to thank you for your leadership, and I want to
00:32:03 thank the office of the governor and the in the cabinet leadership for their
00:32:07 support for this program. I also want to thank my team whose hard work makes
00:32:11 this announcement today possible. Under Senate Bill 47, our program was
00:32:15 required to file all implementing regulations by July one of 2024. With
00:32:20 the filing of these business and licensing regulations today, we have
00:32:23 completed that task two full months ahead of that deadline. And thanks to
00:32:29 the governor for signing House Bill 8 29. We'll now be able to begin
00:32:33 licensing cannabis businesses starting July one of 2024 again, six full months
00:32:40 ahead of the original schedule. As the governor noted, we're excited to be
00:32:44 issuing those licenses through a lottery process. We considered a number
00:32:48 of other processes used in other states and determined this was the most fair
00:32:52 and transparent way to build this exciting industry here in the
00:32:55 Commonwealth of Kentucky. It should be noted that other states are also
00:32:59 adopting this approach. As the governor mentioned, we're also excited to
00:33:03 announce our initial license lottery. Sorry, our initial license allocation
00:33:07 because our program is focused on patient access. It's critical that our
00:33:12 cannabis business licensing ensures that new industry is stable and
00:33:17 sustainable and with an emphasis on small business and provides product
00:33:21 growth to meet cardholder demand. For that reason, the initial license
00:33:26 availability for each business category will be as follows. There will be 10
00:33:30 tier one cultivator licenses. That's the 2500 square foot license for tier
00:33:36 two cultivator licenses to tier three cultivator licenses in the first
00:33:42 initial license period. There will also be 10 processor licenses made
00:33:47 available and 48 dispensary licenses. I will note that the program will not be
00:33:53 issuing tier four. That's the 50,000 square foot cultivator licenses in this
00:33:58 round and we will also not be issuing producer licenses in the first round of
00:34:04 the license process for safety compliance facilities. That's the
00:34:07 testing laboratories. There will be no initial license limitation. It's
00:34:13 important to note that while some license types relate directly to the
00:34:16 production or testing of cannabis like processors or cultivators and can be
00:34:21 located anywhere in the state to ensure patient access, dispensaries need to be
00:34:25 located near Kentucky cardholders so that they can have access to medical
00:34:30 cannabis for their serious qualifying conditions. That's why our program has
00:34:35 created 11 medical cannabis dispensary licensing regions. This is for
00:34:39 licensing only. These regions were developed in conjunction with the
00:34:43 Kentucky Transportation Cabinet and the Commonwealth Office of Technology to
00:34:47 ensure the Kentucky is with qualifying conditions like cancer and PTSD have
00:34:52 the shortest possible drive time to the medical cannabis dispensary nearest
00:34:56 them. Approximated drive times are reflected in a drive time analysis
00:35:00 again provided by the Kentucky Transportation Cabinet and that will be
00:35:04 available on our website and is available here to ensure that
00:35:08 dispensaries are evenly distributed throughout the Commonwealth. Each region
00:35:12 will initially have four dispensary licenses per region with the exception
00:35:17 of the Kentucky Anna and Bluegrass regions, which will have six and no no
00:35:22 county can have more than one dispensary in the initial license
00:35:26 allocation with the exception of our two largest counties, Jefferson County
00:35:31 and Fayette County, which will have to each again. Our goal is to ensure the
00:35:36 Kentucky is with qualifying conditions have safe, affordable access to
00:35:40 medicinal cannabis, and we structure this licensing process again in a way
00:35:44 that is fair and transparent. I encourage all potential business
00:35:48 license applicants to review the application licensing regulations,
00:35:51 which we filed today, and I want to note that we sought to make the
00:35:56 application process accessible to any business that is serious about being a
00:36:00 responsible licensee in Kentucky, and we designed a business friendly
00:36:05 application process with helpful resources for that purpose. Those
00:36:09 include a business licensing application guide, which will walk
00:36:12 applicants step by step through this process again. We appreciate the
00:36:17 support from the governor and his vision, and we look forward to the
00:36:20 launch of the business licensing for Kentucky's medical cannabis program
00:36:23 this year. Thank you, Governor.
00:36:29 If all that seemed very specific, it is. This is not recreational cannabis.
00:36:35 This is medical cannabis, and we have an idea of how many people will qualify
00:36:40 for the conditions that exist. And so flooding a market with a product without
00:36:46 scaling it to the number of people who could qualify for it is pretty much
00:36:51 what happened to him when they issued just a ton of different licenses and a
00:36:55 whole lot of farmers suffered from serious and significant financial harm.
00:36:59 So the goal here is knowing that there is a limited number of purchasers and
00:37:06 patients, ensuring we scale it in the right way. So none of our farmers are
00:37:11 cultivators get in trouble by going too far. And also, you can see this is not
00:37:16 about having a dispensary on every corner. It is a limited program that we
00:37:22 can monitor and fulfill the promise we made of doing this safely, but also
00:37:27 having access in each region for people that do qualify. So I think you'll see
00:37:33 we have. We have really worked to do this as responsibly as possible in both
00:37:40 the business side as well as as the patient side. And as we move forward
00:37:46 after a year or two years, depending on the numbers, depending on numbers of
00:37:50 conditions that may be added, we have a chance to further scale it and you can
00:37:54 always scale up. You can't scale down without cutting people out of a
00:37:58 business they've already qualified for. So we're happy to take more questions
00:38:03 on this as we go. Also, we'll make sure that the maps and the numbers are
00:38:08 available for everyone. The most important thing for these businesses
00:38:11 that want to be apart is that they see the deadlines for the applications and
00:38:16 they know that this is ultimately going to be a lottery process, which should
00:38:19 take all of the lobbying to pick me or pick me or any of the things in
00:38:25 something like this that could, um, encourage people to try to to get a leg
00:38:31 up in different ways that we don't want to see. We want a fair process for
00:38:36 anybody who may want to be involved. Okay, now that the 2024 legislative
00:38:42 session is concluded, I was gonna provide some updates on actions I've
00:38:45 taken since Monday. This session provided a chance to make some key
00:38:50 investments in our budget through the next buy in him. We worked with the
00:38:54 legislature throughout the process, and while there are a couple of things
00:38:58 that were not in this budget that this state desperately needs and will hold
00:39:02 us back until we get them like significant educator raises and
00:39:05 universal pre K. There is a lot for Kentucky ins to be excited about in the
00:39:10 budget. The budget includes another $70 million for the Kentucky Product
00:39:14 Development Initiative program or K P D I. In each of the years, this is our
00:39:20 site development program that helps us win speed to market. That's how I can
00:39:24 tell any CEO that we can get their facility up and operating faster than
00:39:29 anywhere else in the country. I got to be in a town where advanced nano
00:39:33 products told Janet Yellen, the U. S. Secretary of the Treasury, that we got
00:39:38 them going faster than they've ever seen anybody in their industry. That's
00:39:42 just one way that we win and continue to attract good jobs. And this is the
00:39:47 very flexible program that allows us to help local areas by land, build a pad,
00:39:55 run utilities to it, create an access road, just different things that help
00:40:00 not just be shovel ready, but build ready.
00:40:03 The budget also included $130 million to support approved mega projects.
00:40:09 We're seeing larger projects than ever in history. Blue oval being the
00:40:13 biggest ever A. S. C. Being the second biggest ever. But we opened um New
00:40:18 Corp Brandenburg, which was a billion dollar plus project. Other projects
00:40:22 look like they're growing into billion dollar plus project. So this is a fund
00:40:27 and we had it in the last one. We call it the closing fund that gives us the
00:40:31 flexibility without a special session to compete when when that company says
00:40:36 if only we had this last thing and we can stare at them and say, well, you
00:40:39 sign if you had the last thing, they say yes and we close the deal. Um we did
00:40:44 get extra flexibility though, even in this fund in this session and and that
00:40:49 flexibility is is specifically areas that haven't seen enough jobs in a long
00:40:53 time. Maybe areas where the population is smaller. So the size of the project,
00:40:58 you know what is a big mega project in one region of the state might not
00:41:03 qualify in another. And this gives us the flexibility to deliver in some of
00:41:07 those areas. It's something we asked for. It's something that that that all
00:41:11 the leadership in the legislature saw and it's going to really help us in
00:41:15 certain areas of the state in the budget. Uh Senate Bill 91. That was
00:41:21 some called the cleanup, but it added certain things came back and did a
00:41:25 number of things that we had asked and a number of things we needed. It
00:41:28 provided us the $300 million pool I asked for for the Mountain Parkway and
00:41:33 I 69 though it does condition them on securing major federal grants. So this
00:41:38 is one where you don't get everything you want, but this is the main reason
00:41:42 that we need it. This is how we got the Brent Spence companion bridge grant.
00:41:47 There is a huge round of funding that has opened up from the U. S. Department
00:41:52 of Transportation. And this is the way to say we have our skin in the game and
00:41:56 we know for a fact that you score better when that's there. So I want to
00:42:00 thank uh leadership in both the House and the Senate for adding this in again
00:42:05 not not not the way I wanted it initially, but it's going to give us a
00:42:09 good tool to try to push uh to get a big grant for those projects. Uh just
00:42:14 like in my first term additional uh money for water and wastewater, water
00:42:20 and wastewater creates jobs. It brings clean drinking water to people that
00:42:24 haven't had it. It increases capacity which helps for economic development.
00:42:28 It helps with pressure which helps people fight fires and we just have
00:42:32 such need across our state. So this budget includes $150 million for two
00:42:37 new programs, an emergency fund for troubled or economically restrained
00:42:41 water and wastewater system as well as $184 million for 40 specific water and
00:42:47 wastewater projects throughout the commonwealth in disaster response. Um I
00:42:53 was and I continue to be critical about limitations on responding to natural
00:42:58 disasters. The way you ought to respond to a natural disaster is to do
00:43:01 everything you can to be there for your people. But I had talked about how um
00:43:06 there were two numbers that that that while I didn't think there should be a
00:43:10 limit or flipped, there was $25 million for emergency response and $50 million
00:43:16 for FEMA match. But we've gone over $25 million in emergency response each of
00:43:21 the last three fiscal years. In fact I think we'll have gone over 50 and we've
00:43:25 never hit the 50 million in one fiscal year on a FEMA match. So Senate Bill uh
00:43:30 91 uh flip those and gave us more money at least for the emergency response. So
00:43:37 we now have not 25 but 50 in that initial emergency response again.
00:43:42 Not what I was looking for, not what I'm not, not the policy I think we
00:43:47 should have, but it's better and and this is what we asked for in the final
00:43:51 days and and they delivered and we appreciate it. Uh to date I have signed
00:43:56 169 bills and so today just like I did last week, just a few I want to
00:44:02 highlight one is House Bill 4 69 officially establishing the purple star
00:44:08 schools program and setting requirements for eligibility. This is
00:44:12 something that Brittany and I've been participating in and and now it's
00:44:15 officially part of state law. Kentucky has already implemented a thriving
00:44:18 purple star schools program in coordination with the Kentucky
00:44:21 Department of Education and the Kentucky Cabinet for Health and Family
00:44:25 Services. Um These are designation for schools that are specifically friendly
00:44:32 with our nation's armed forces, including National Guard and reserves
00:44:36 with all the sacrifices that our military heroes make ensuring the
00:44:40 schools welcome their kids and provide those supports. You know, if a parent
00:44:44 or two parents are deployed, that's not easy on a child and having a school
00:44:49 system that has those wraparound services up and ready to go and
00:44:53 recognizes the sacrifice of the family and says we're going to support your
00:44:57 kid that much more. Um that's that's another way we get people into our armed
00:45:01 forces to say you take on extra risk and we're gonna take on extra
00:45:05 responsibility to you and your kids. I also signed Senate Bill 74 which
00:45:10 included the provisions of the mom Nabas bill. This is a great bipartisan
00:45:14 effort that all the concerning stuff was pushed out at the end in that great. I
00:45:19 mean different people have tried to attach things that didn't have anything
00:45:22 to do with this bill and in the end they did what was right. It ensures
00:45:26 access to critical prenatal and post birth care for new moms and babies. It
00:45:30 not only increases health care coverage for expecting mothers but it also
00:45:34 provides increased services and accessibilities to mental health care
00:45:37 as well as telehealth visits. It's gonna have a big impact. And before we
00:45:42 close, I want to remind Kentucky and that we're only a little over a week
00:45:45 away from the team Kentucky Derby week kickoff. This event is our way of
00:45:50 starting off the Derby week festivities here in Frankfurt. There's something
00:45:54 for the whole family to enjoy. There'll be live music, food trucks, games and
00:45:58 crafts and common fest is returning to offer beer and spirits from dozens of
00:46:03 Kentucky breweries and distilleries. So we hope to see everybody there
00:46:07 saturday April 27th, the saturday before Derby from noon to five p.m. On
00:46:13 the south lawn of the capital. Uh and next month april I want to note is the
00:46:18 month of the military child, the time when we celebrate Kentucky's military
00:46:22 Children and remind them how special they are with our commonwealth being
00:46:26 home to two major army installations as well as thousands of National Guard and
00:46:30 Reservist Kentucky has over 40,000 military Children. These are kids who
00:46:35 make sacrifices daily so their loved ones can serve our country. Over the
00:46:40 past few years, Brittany has gotten to meet quite a few of our military
00:46:43 families and Children at Fort Knox and Fort Campbell and tomorrow she'll be
00:46:47 back at Fort Knox to meet with some of our military Children. I can't wait to
00:46:51 hear about her visit. They like when she goes there much more than when I go
00:46:55 there. Brittany and I have made it a priority to support Kentucky's military
00:46:59 families. So today we're gonna make the team Kentucky all stars, everybody
00:47:04 involved in the purple star school program, all of our educators who wrap
00:47:09 their arms around these kids as well as our military Children and families
00:47:13 themselves. All right. So with that we will open it up to questions. We'll
00:47:18 start with Sarah Michaels.
00:47:19 I have two questions about medical cannabis. There was provision in the
00:47:25 budget that withdrew somebody from the office of medical cannabis until
00:47:29 certain studies were done. And also there's a possibility of what drive
00:47:33 kind of votes in the bill. Now do you think either of those will float the
00:47:37 impact of that? And my second question is there were several bills that
00:47:41 didn't quite make it. They're controversial this session like Senate
00:47:44 Bill six uh snapshot labor. Why do you think those didn't make it?
00:47:49 Uh well first I believe that at least one of the conditions on funding has
00:47:54 already been met as it relates to medical cannabis. I believe the
00:47:58 advisory committee has already issued the necessary opinion about there being
00:48:03 enough research and credibility. So no, I think this is going to move ahead.
00:48:08 I think in January one of next year you will see a regulated dispensary uh in
00:48:16 each of these regions um more than one and you will see people with the cards
00:48:23 that they need where a doctor or an A. P. R. N. Um has certified the
00:48:28 condition. I think we're moving ahead and it will be available maybe if not
00:48:31 in every county and it won't be available in every county. It will be
00:48:34 available in every uh region uh in this session while while it certainly felt
00:48:41 you know as toxic as the session has felt in in frankfort. I don't think I'm
00:48:45 alone in in in thinking that there were some really nasty bills that thankfully
00:48:51 failed. I mean there was a pro child labor bill who is pro child labor and
00:48:56 thankfully uh that one failed and and cutting uh food assistance to the
00:49:01 working poor. They're not going to get more people working. They were already
00:49:05 working. All it was going to do is get them to stop working so that they would
00:49:08 qualify again. So the fact that those bills did not move forward that the
00:49:13 anti D. E. I. Bill did not move forward are all good things. I mean our
00:49:17 reputation right now has changed so much nationwide. I mean people are
00:49:21 talking about Kentucky in a totally different way than they did four years
00:49:25 ago. Let's not be cruel. Let's not let's not cut food assistance to our
00:49:30 people, promote child labor or or get out there and be against diversity. I
00:49:34 mean we're establishing a great reputation that businesses want to be a
00:49:38 part of. Let's not mess it up now. Uh Jessica um bro. The first one has to do
00:49:44 with medical cannabis. Of course it's a rapidly growing industry. Um some
00:49:48 people have been critical that this doesn't go far enough in expanding
00:49:52 access. Is there room to grow figuratively and literally room to grow
00:49:57 in this industry for those who maybe are concerned about still seeing this as a
00:50:01 limited access or is this kind of ends right now? There is certainly room to
00:50:05 grow um on the medical cannabis program. But we saw through hemp if you don't
00:50:10 grow it appropriately and you you create too many licenses too early, you
00:50:15 can bankrupt a lot of businesses. Uh listen, we we are way behind in in what
00:50:20 number state we are on on medical cannabis. But it does mean we can look
00:50:24 at every other state and see what's worked and what hasn't looked at how we
00:50:27 implemented sports betting. We were able to take all those best practices and do
00:50:31 it right. So no, this is likely the minimum uh that that you will see on the
00:50:36 program moving forward. But again, you can only scale up scaling back, you
00:50:40 know, hurts businesses, hurts people and and hurts access. Um and and we're
00:50:45 gonna get an idea uh as we go and and through regulations we can increase. We
00:50:50 have flexibility on on how we do it as we go. But but getting it right the
00:50:54 first time and I think it's important that we prove to the General Assembly
00:50:58 and the people that we can do it safely and that we can regulate it
00:51:01 appropriately. And that means we don't start huge. We start with a manageable
00:51:06 program that yes can grow. And I'm sure there will be some uh that that that
00:51:11 wish that there were more uh out there. Give us time and let us do it right.
00:51:16 And I want to thank Senator West who got that bill through Senator West and
00:51:20 I don't agree all the time. We don't agree on a lot of things. Um but he
00:51:24 proved that we can disagree on two different things and come together and
00:51:28 and get important changes in on one that we do agree on. That's that's how
00:51:32 we're supposed to govern and your second one. Yeah. Um regarding House
00:51:36 Bill five of course you've spoken out about some of the more controversial
00:51:39 aspects of the bill um specifically for smaller communities particularly in
00:51:43 western Kentucky. Now there's concern about implementation of some of what
00:51:47 House Bill five. Oh yeah. For people being incarcerated. So now that it's
00:51:51 passed and it's gone through, how are you going to try and work with
00:51:55 communities who are concerned about? Well implementation of a bill like
00:51:59 House Bill five uh takes time uh and effort. I did a lot of this as attorney
00:52:04 general because when changes are made in the criminal code, you got to put
00:52:08 together the materials, you've got to educate existing law enforcement. We do
00:52:12 that through D. O. C. J. T. The Department of Criminal Justice
00:52:15 training and then you'll see the bigger groups do it on their own as well as
00:52:19 smaller meetings that departments will have. And so you've got to make sure
00:52:24 that that law enforcement knows um things that are now a crime that
00:52:28 aren't a crime, what the different elements are uh that that makes it an
00:52:33 arrestable offense. How to deal with with some of these situations uh on on
00:52:39 the incarceration side for for jails and prisons. The answer is you do the
00:52:44 best you can because you have a limited number of cells, you have a limited
00:52:48 amount of room and you have no control on how many individuals are sent there.
00:52:52 That's why I believe that you ought to pay your bills and House Bill five
00:52:58 coupled with the new limitations we have on necessary government expenses
00:53:03 related to incarceration means we will likely not be able to pay our bills.
00:53:07 Right. So the amount we have in the budget for corrections and for payments
00:53:11 to jails which house the lower level felons was set on assumptions that did
00:53:17 not include House Bill five. And just looking at those assumptions, what over
00:53:21 the past 18 years, I think 13 of them we've gone over and then 10 of those
00:53:26 13 we've gone over by more than the new limit they set and that's before House
00:53:30 Bill five. And so we work with law enforcement on the new implementations.
00:53:35 We also work with non profits and others that can hopefully um help our
00:53:39 homeless population not be in those situations. I mean you you want to
00:53:43 prevent um a crime or a violation from occurring if you can. But we're going
00:53:49 to have some unfixable challenges that come out of this. You know, we hit that
00:53:55 limit. I can't pay a jail for housing. Uh, a lower level felon, an inmate. And
00:54:02 so that's only resolvable by special session.
00:54:05 Okay. Uh, Carolina
00:54:08 governor. I understand you guys are essentially moving up the timeline for
00:54:13 these licenses when it comes to the medical cannabis program. Um, but from
00:54:19 what I understand, right, no growing can happen. No processing can happen.
00:54:23 Basically nothing can happen until those licenses are issued. So even with
00:54:27 the moved up timeline, is that enough time to ensure that come January
00:54:33 Kentucky and can access quality products. Well, you definitely pointed
00:54:40 out that the licensing is occurring earlier, but it's only open to patients
00:54:45 at the same time. And then I'll get into the other part. So people ought to
00:54:49 know that while we're moving up the timeline, we're doing that on the
00:54:52 business side so they can be prepared for the date that the original bill
00:54:56 said people could access medical marijuana. Sam, you want to talk about
00:55:01 the other piece?
00:55:02 Thank you, Governor. Thank you for your question. Your question was about
00:55:08 whether with the updated timeline where we can begin issuing licenses starting
00:55:15 in July of this year. And of course, that's that that is the plan and the
00:55:19 approach that we're taking. Whether businesses, once they become licensed
00:55:23 after October, can then, you know, start their operations. The answer to
00:55:28 that is yes. However, and House Bill 8 29 and again, thank you to Senator
00:55:32 West for his hard work on that. Um, House Bill 8 29 makes clear that
00:55:37 dispensaries cannot begin dispensing medical cannabis, as the governor noted
00:55:42 until January one of 2025.
00:55:47 Is that enough time to ensure their quality products on the shelves? Let me
00:55:52 add that it gives us a better chance of hitting that deadline other than
00:55:58 everybody can start operating in January of 2025. I mean, there's still
00:56:03 remembered all has to occur within the Commonwealth. So you can't purchase
00:56:06 medical marijuana from a different state and put it in your dispensary. So
00:56:10 we still will have to do the growing the processing and then ultimately the
00:56:14 sales. And I think we'll have a better idea from those businesses as they
00:56:18 apply of that startup time. But but these changes make it make it, uh, at
00:56:24 least give us a better chance of having product at the earliest possible time.
00:56:28 Yeah.
00:56:29 Uh, and I'll just add that, as you'll see from our tiered licensing
00:56:35 structure and the initial licensing allocation, we prioritize small
00:56:38 business. We want to give small business in the Commonwealth opportunity
00:56:41 to be part of this new and exciting industry. And we believe that with
00:56:44 respect to the small business cultivators that their startup time
00:56:48 will be increased much, much smaller startup time compared to much larger
00:56:55 growers that are in, you know, for example, 25,000 ft facilities. 2500
00:57:00 square feet is the tier one cultivator, and that is the tier where we have the
00:57:04 most licenses initially available.
00:57:09 I guess. Are you guys concerned that there's a potential scenario out there
00:57:13 where things won't happen in time? Well, there was no way it was gonna
00:57:18 happen in January. If you got your license to grow the date it was
00:57:21 supposed to. So this gives our best chance to hit that, and we'll provide
00:57:25 more updates as as we get more feedback. Um, I believe that it's likely in
00:57:31 January that there will at least be limited supply. But but whether you
00:57:36 know again, it's it's April and people can now begin applying in July, and
00:57:41 we've got to do all the background checks and everything else on them. So
00:57:45 what we did is by ourselves another six months to try to get prepared and to
00:57:49 get this done
00:57:50 online. Tom Latek. I knew you could not miss a team Kentucky update
00:57:56 unless he did. Absolutely. Absolutely. Governor. Good afternoon to you. I've
00:58:03 got two questions, and one is talking about the medical marijuana. Um, you
00:58:10 mentioned earlier that the number of licenses was based on the number of
00:58:15 folks that you thought would be eligible for medical cannabis. What is
00:58:20 that number that you think could be eligible? And secondly, any vetoes since
00:58:24 sign? He died. And are you anticipating any?
00:58:28 Uh, I think I've I've made a couple of vetoes today. They're not big bills.
00:58:35 There was one on a board of podiatry. That's just not constitutional. But I
00:58:39 don't think that's necessarily big news. Um, there are a couple of small line
00:58:44 items that I don't think are going to make, uh, again, uh, significant news
00:58:49 that are out there. But we'll have a couple of vetoes, but not on anything
00:58:53 that I've seen people following. Do you have the number on hand? Okay.
00:58:56 Yeah.
00:58:56 Thank you for the question, Tom. And it's a great question. So one of the
00:59:04 things we're required to do under Senate Bill 47 is look at best practices
00:59:08 in other states and also look at what other states have done with their
00:59:11 medical cannabis programs and what that looks like when they start up. If you
00:59:15 look at peer states, which we did, for example, West Virginia, which is
00:59:20 demographically very similar to Kentucky and about just over a third
00:59:24 our population size there. Their patient total right now is hovering
00:59:29 between 32,035,000 folks. Now their conditions, they don't have any
00:59:36 conditions. Doctors can prescribe based on the condition that the patient
00:59:39 presents with. So that presents a challenge from our standpoint with the
00:59:43 limited conditions that we have. But if you would, if you multiply their state
00:59:48 total by, you know, basically a factor of three, we're looking at somewhere
00:59:53 between 70 and 90,000 patients in the next two years. And of course, there
01:00:00 will be a significant ramp up period over the first year.
01:00:03 All right, John Charlton, W. H. A. S.
01:00:09 Thanks, Governor. Can you hear me? Okay, I can. All right. I appreciate it.
01:00:18 Wish I could be there in person. Um, just had a couple questions on the
01:00:21 medical cannabis program. Uh, there has been some complaints about the
01:00:25 pharmacist. Uh, I guess rule to have a pharmacist that dispensaries or or
01:00:32 cultivator or actually dispensaries. Um, the complaints have been that
01:00:37 that's just another, I guess, challenge to overcome to get what you what you
01:00:42 need. Um, could you answer that first? And then I can ask you the second
01:00:45 question. Yeah, it was removed in this most recent piece of legislation.
01:00:51 Okay, that's what I thought it may have happened, but I didn't didn't read it.
01:00:55 Right. Second is the lottery. Could you guys explain a little bit more about
01:00:59 that lottery? How it's done? Obviously, lotteries are different. Like the NBA
01:01:03 lottery. If you're a team with record, you get more falls. Uh, is that
01:01:08 something for like a preferential thing for small business that they actually
01:01:13 get a better chance?
01:01:16 Well, we'll we'll let uh Sam answer that one about how it's gonna go. And
01:01:20 while we're gonna provide a chance to televise it, it's probably gonna be a
01:01:23 person at a computer. So don't get too excited that they're going to be
01:01:26 floating balls that we're gonna pick out with logos on them. Um, but what we
01:01:31 know is that states that don't have a lottery system that go through other
01:01:36 things get, um, weighed down in years of litigation, right? Everybody who
01:01:42 thinks that they should have scored this or that they should have scored
01:01:45 that, um, file litigation and it delays and delays significantly. What that
01:01:51 also means is typically those groups with the most resources, not a small
01:01:55 business, but a big business, maybe an out of state operator has the resources
01:01:59 to keep things tied up in litigation, has the resources to delay it longer,
01:02:04 has the resources to maybe score differently than than other say
01:02:09 Kentucky or small businesses would.
01:02:11 Yeah.
01:02:11 Thank you, Governor. And just to add to that, when we looked at our licensing
01:02:20 structure, we looked at again other states and one of the other states that
01:02:24 we looked to was Oklahoma, which had unlimited licensing and they released a
01:02:28 report last year where they had a 62 to 1 oversupply of medical cannabis in
01:02:33 their system. So again, we wanted to look at a more limited, uh, structured
01:02:38 licensing system. And and through that, we're essentially limiting initially
01:02:45 the amount of folks that can get into this new market. But if we're going to
01:02:50 limit that number, we want to make sure that is a fair and transparent process.
01:02:54 The lottery is the best way to ensure that everybody has a fair shake and a
01:02:59 fair shot at doing that. With respect to the lottery process, this is this is
01:03:05 how that will work. So first, individuals can begin apply. Individuals
01:03:09 and businesses can begin applying on July one of 2024. As we mentioned
01:03:13 earlier, the license period once you've submitted your application, we will
01:03:19 review your application, giving him businesses priority and House Bill 8 29
01:03:23 requires that requires us to do so in terms of the review process. We will do
01:03:29 that. Once your application is reviewed, we will determine whether it is
01:03:34 sufficient or if it is deficient. If it is deficient, we will give you an
01:03:38 opportunity to correct that. For example, if you do not have the
01:03:42 appropriate documentation attached that we're requiring of you, or if you've
01:03:46 not clicked all the appropriate boxes or made the attestations. Once we hit
01:03:52 August 31st, the application window will close and we will finish the last
01:03:58 round of course, there will be a few folks that will apply late and we'll
01:04:03 we'll give them an opportunity to cure their applications on on October 1st.
01:04:08 We will take all of those folks that are deemed to have completed their
01:04:12 application and they will be put into a lottery. That is only if the number of
01:04:18 applicants exceeds the number of initial licenses available. So for
01:04:23 example, if there is a dispensary region and four people apply, those
01:04:27 four businesses get a license and no lottery is required for in another
01:04:32 example, if let's say eight folks apply for dispensary license in a particular
01:04:38 region, then we will hold a lottery for that specific region and we will be
01:04:43 holding a lottery. I would imagine for a number of these and we've had
01:04:46 significant interest with respect to the lottery process itself. A file of
01:04:52 eligible applicants for each license category where a lottery is necessary
01:04:56 will be prepared by the cabinet's office of medical cannabis. The office
01:05:00 will assign each eligible applicant with a unique numerical identifier and
01:05:04 then the cabinet's office of legal services will de identify that file and
01:05:09 send it to the Kentucky Lottery Corporation. And I just want to take a
01:05:12 moment to thank the Lottery Corporation for their hard work and their
01:05:15 partnership on this. The Lottery Corporation will conduct an anonymous
01:05:19 randomized random drawing for each license category necessary in
01:05:25 accordance with a set of written rules established by the cabinet and the
01:05:29 Lottery Corporation, which were signed this morning. The lottery results will
01:05:33 be provided by the I'm sorry by the Kentucky Lottery Corporation to the
01:05:38 cabinet using an encrypted file listing the numerical identifier selected by
01:05:43 the lottery. The cabinet's office of legal services will compare this file
01:05:46 with the original and re identify the unique numerical identifiers and send
01:05:51 the results to the office of medical cannabis. The cabinet and the office
01:05:55 will then make the announcement of those who were selected in the lottery
01:05:58 process.
01:05:59 So, uh, like we said, a lot less exciting than that NBA draft and
01:06:08 probably a little less exciting than the seventh round of the NFL draft. Uh,
01:06:12 but again, we want to be really transparent with all the details on how
01:06:17 this is going to work. We've been able to put a lot of thought and a lot of
01:06:21 research. So thank you to Sam on that. Austin Horn from the Herald Leader.
01:06:25 Yeah.
01:06:25 Hey, thank you, Governor. Uh, had two questions about two different bills.
01:06:35 Hey, can you hear me now? I can hear you.
01:06:39 Great. Um, I've got two questions about two different bills. Um, one, the
01:06:49 rationale behind signing Senate Bill 1 91. I believe that's the higher ed
01:06:55 bill, changing certain weights on the performance funding formula and
01:07:00 removing race from being considered. Uh, and then to there's a lot of
01:07:05 discussion on House Bill five.
01:07:07 And I'm the open records bill, and I was just wondering if you had any
01:07:11 general reaction to that not getting passed in the final day. Let's just
01:07:17 yeah. So 1 91 is one where where, you know, I don't have the ability. I
01:07:24 didn't think to line item that bill. And even if you could, you can't add
01:07:27 words back. Um, the bill continues to reference underrepresented students,
01:07:34 and it provides significant additional help to Kentucky State University. Our
01:07:39 public H C B U. Uh, H B C U as well as as our regional universities that have
01:07:47 struggled under the performance funding. And so, you know, I'm trying
01:07:54 there to to decide whether to veto a bill in its entirety because of its
01:07:59 removal of that word, which I support being in there. But at the same time,
01:08:04 then have less funding coming to K S U to more head into those other
01:08:09 institutions. I want to say very clearly that I support diversity
01:08:14 initiatives in Kentucky. I support direct assistance to minority students.
01:08:19 I believe that we are better when we are lifting every single one of us up.
01:08:25 And I believe underrepresented students, including our minority
01:08:28 students, have faced more challenges when it comes to post secondary
01:08:32 enrollment. That's that's one of the reasons that I fought so hard against
01:08:36 the anti D I bill because we were number one in the country in our
01:08:40 increase in post graduate enrollment. And in large part is because of
01:08:47 underrepresented students going to college at a higher rate than we have
01:08:51 ever seen. And so that was one where to get the money where it needed to go. I
01:08:57 had to sign something into law that I did not fully and entirely agree with.
01:09:00 But I think that was the same decision made by a number of our legislators,
01:09:04 including Senator Neil and others. Uh, 2nd 509 is is done. It did not pass.
01:09:12 It never made it to me. Certainly had a number of different provisions in it,
01:09:17 but it's done. And we've had zero discussions on any legislation that did
01:09:22 not pass this session with any legislator whatsoever.
01:09:25 Uh, Rebecca Grapevine, Courier Journal.
01:09:30 Yeah.
01:09:30 Yes. Hello, Governor. Um, back on the medical cannabis thing.
01:09:38 Some states have faced challenges with underrepresented groups or groups that
01:09:44 have been disproportionately impacted by past drug laws, not being able to access
01:09:50 this, the goods, the spoils of the medical cannabis programs. You mentioned
01:09:54 wanting the program to be fair. Are there steps that you have or you will
01:09:58 take to, um, to address this?
01:10:02 Yeah, I'll ask Sam to come up again. But 11 of the one of the advantages of the
01:10:08 lottery system is we've seen in other places where it's been instituted a
01:10:13 better mix of ensuring that everyone has access not just a product, but to
01:10:18 the business opportunities themselves.
01:10:25 Thank you, Governor. And thank you for the question. The answer to the
01:10:28 question is, and I think the question was, uh, will there be some social
01:10:33 equity provision in the licensing structure for medical cannabis
01:10:38 businesses in the Commonwealth? The answer to that is no. And the reason for
01:10:42 that is because it was not provided for in Senate Bill 47 or in House Bill 8
01:10:48 29 from this year. Other states that do have social equity programs, they do so
01:10:53 by law on. We did not have that in our law. Andi, of course, that that is our
01:10:59 guiding principle for establishing this framework. Thanks.
01:11:03 All right. We had a long team Kentucky update today. As a gift, there is no
01:11:10 team Kentucky update next week. We will see you in two weeks. Remember, life
01:11:16 short, our job is to do good things and be kind to each other. Thank you all
01:11:20 very much.
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